Latest FTX News: $10 Billion Repayment Begins, 98% of Users to Be Compensated This Year

The Delaware bankruptcy court officially approved FTX’s bankruptcy plan on October 7, 2024, allowing it to initiate the creditor compensation process using up to $16.5 billion in recovered assets.

This decision marks a substantial progress in refunds for FTX creditors since the collapse in November 2022.

According to the plan, FTX will prioritize covering 98% of users within 60 days after the bankruptcy plan takes effect, specifically creditors whose account assets were ≤ $50,000 at the time of bankruptcy.

Core Details of the Compensation Plan

• Compensation amount and timeline: The total value of assets available for compensation from FTX is between $14.5 billion and $16.3 billion. Compensation will be phased: approximately $1.1 billion will be paid to 98% of users by the end of 2024, with the remaining amount to be completed by Q2 2025.
• Compensation standard: Based on the dollar value of claims at the time of bankruptcy in November 2022. Small creditors (≤ 50,000 USD) will receive 118%, while large creditors will receive 100% + interest compensation.
• Controversy Focus: Some creditors demand compensation in physical form (original currency), opposing settlement based on the 2022 dollar value. For example, the price of Bitcoin was only $16,000 at that time, but currently (June 2025) it has exceeded $110,000. However, the court supports cash compensation, as FTX has a huge asset shortfall (only 0.1% BTC remaining, 1.2% ETH remaining), and physical compensation would require purchasing coins in the market, which is “outrageously expensive.”

Current Compensation Progress and User Categories

• Effective date of the plan: Originally expected to take effect on October 31, 2024, but due to the complexity of the process, some payments will be delayed until early 2025.
• Priority compensation group:
  • Class 7A: Users with debt ≤ $50,000 enjoy a 120.5% priority repayment rate (including interest). For example, a certain case shows that it was allocated on February 18, 2025.
  • Class 5A: Users with debt greater than $50,000 need to wait for subsequent batches.
• Creditor attitude: 94.48% of creditors (total claim value of $6.83 billion) voted in favor of the plan. However, opponents are concerned that cash compensation may lead to significant tax costs.

Claim Operation Guide (Five-Step Process)

In March 2024, PwC will activate the FTX Digital Markets claims portal as a joint liquidator, and users must complete electronic claims registration before the deadline of May 15, 2024:

1. Account registration: Provide information such as name, phone number, email, account opening date, etc., and select the type of claimant (individual/institution/non-customer creditor).
2. Link FTX account: Fill in identity information (passport/ID number), link the original FTX account email and verify permissions.
3. Confirm or dispute balance: Check the account balance data displayed by the system. If there is a dispute, you need to upload proof documents (such as position records, transaction screenshots, etc.).
4. Identity verification (KYC/AML): The clearing agent reviews identity documents in the background and notifies the user via email once approved.
5. Waiting for liquidation allocation: payments will be made in batches after the judgment is completed, with the first allocation scheduled to start at the end of 2024 to the beginning of 2025.

Frequently Asked Questions and Risk Alerts

• “Disputed Debt Claim”: This may occur due to duplicate declarations, discrepancies in holding records, or jurisdictional conflicts (such as those involving Liquid Global users in Singapore). Such claims can still be appealed, and upon approval, may receive subsequent allocations.
• Expectations for Capital Flow Back to the Market: Approximately 50% of the original debt claims have been transferred to professional institutions, and some funds may not return to the crypto market. However, analyst Su Zhu believes that the release of tens of billions in funds may still drive the market.
• Security Warning: Beware of phishing emails, and only operate through the official FTX claims portal (two-factor authentication verification required).

As of February 2025, some Class 7A users have received 120.5% repayment (including interest). For users whose debt status shows “disputed,” the liquidation team is still advancing asset reconciliation and jurisdiction coordination, with the final allocation or continuation extending to the middle to late 2025.

For claimants who fail to submit on time, some jurisdictions may open supplementary channels, but the recovery rate of funds will be significantly reduced. This two-and-a-half-year bankruptcy liquidation is coming to an end with billions in cash liquidity, marking the conclusion of the darkest chapter in cryptocurrency history.